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Ryan Lizannis of Future Firm discusses the importance of proper engagement letters in firms that practice value pricing, fixed pricing, and subscription pricing. Many firms struggle with delivering work out of scope without adjusting prices, leading to decreased margins and capacity. Lizannis advises using engagement letters as contracts to define the relationship with clients, protecting both capacity and margins. The engagement letter should outline services, prices, and scope of work to prevent misunderstandings and ensure fair compensation.
